Brussels rules 'Open Skies' pacts illegal

TRANSPORT Secretary Stephen Byers is set to lose the power to negotiate transatlantic Open Skies treaties to Brussels after a key judgement from the European Court of Justice.

Advocate General Antonio Tizzano has ruled illegal bilateral treaties signed by eight members of the European Union, including Britain. If that decision is confirmed by the EU's supreme court, the European Commission would gain the power to negotiate with the US on behalf of the EU as a bloc.

The ruling said separate treaties signed by member States are illegal under EU law, infringed 'Community principles' and acted against the interests of other States within the union.

It would mean Brussels taking over the current round of Anglo-US Open Skies talks in which Britain has been aiming to allow more American carriers into Heathrow but only in return for access into the US market for British airlines. It may also lead to scrapping the Bermuda II agreement, which limits US access to Heathrow and protects the position of British Airways.

Open Skies talks were cancelled this week after the US Department of Transportation demanded BA give up about 16 take-off and landing slots a day if it wanted to merge its North Atlantic services with American Airlines.

BA said that is too onerous and scrapped the planned alliance.The EC argues if it were to negotiate the treaties, it would prevent the US playing off EU countries one against the other, heighten competition, and increase the possibility of intra-EU mergers.